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Preventing Cyber Hacks in ATMs

As banks and financial corporations move to a more secure payment future, there have been numerous developments that have been implemented. First, credit and debit cards with security chips rather than swiping features have reduced hackers’ ability to compromise information at POS terminals. However, when it comes to Automatic Transaction Machines (ATMs), there is still a lot of risk that banks and consumers can incur. In fact, as of 2016, the number of these attacks had increased by 70 percent compared to 2015 alone, and they only continue to get more sophisticated as technology evolves. More and more, this new generation of fraud puts today’s financial institutions at considerable risk, according to Hitachi Systems Security.

ATM Skimming.

Hackers use a process known as skimming to collect Personal Identification Numbers (PIN) and credit card details using a specific device. Once the information is recorded, they use Bluetooth technology or sim cards to download the information for future use. The most concerning aspect of these devices is that most people don’t even know the device was utilized.

Reducing ATM fraud.

As a bank, it’s important for your processes to be intact. Monitoring ATMs 24/7 with cameras and logs is the first step in preventing ATM fraud. Next, detecting any intrusions can prevent skimming from occurring in your ATMs. These are particularly difficult to prevent, so the technology to identify it can save your customers a headache and your business from facing severe litigation claims for negligence.

Next, centralizing the logs is imperative to track potential breaches and red flags. In the second phase, logs are being centralized and aggregated. By collecting all security logs from various ATM and POS sources to a secure and dedicated environment, logs are centralized. Then, information is then aggregated into a “data lake” where it is monitored and analyzed. Finally, a Corporate Protected Zone (CPZ) must protect the security logs from all other bank environments. This zone must follow strict access control requirements and can only be accessed by previously identified security staff.

Once this process is put in place, your bank can more easily identify breaches, breach attempts, triggers, and potential gaps in security coverage.

Finally, your bank can implement a process to respond to skimming incidents. Full breach prevention starts with your employees. Provide comprehensive training for how to identify and manage ATM skimming. Hackers are only becoming more advanced, and your bank’s security – both cyber and beyond – need to reflect this, starting with a Cyber Liability Insurance policy.

About Financial Guaranty Insurance Brokers

Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.